Post Market Update
- US: Dow: 12727.20 (-0.39%), S&P 500: 1353.64 (-0.23%), NASDAQ: 2896.94 (-0.40%)
- Europe: CAC: 3179.90 (-0.03%), DAX: 6565.72 (0.13%), FTSE: 5662.43 (-0.07%).
- Asia-Pacific: Australia: 4105.10 (0.56%), China: 2147.96 (-1.77%), Hong Kong: 19121.34 (0.15%), India: 5197.25 (-0.57%), Japan: 8724.12 (0.00%).
- Metals: Gold: 1591.60 (-0.03%), Silver: 27.32 (-0.18%), Copper: 3.48 (-0.54%)
- Energy: Crude Oil: 88.43 (1.53%), Natural Gas: 2.80 (-2.54%)
- Commodities: Corn: 7.72 (4.36%), Soya Bean: 15.90 (2.45%), Wheat: 8.97 (4.09%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2272 (-0.20%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5634 (-0.40%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 78.8550 (-0.39%)
- 10 year US Treasury: 1.472% (-0.015)
Market and Economy News Update
U.S. markets end lower: U.S. markets closed lower, led by industrial and consumer shares, in choppy trading on Monday, amid disappointing June retail sales data, and investor worries over the slowing economy. The Dow Jones Industrial Average (INDEXDJX:.DJI) dropped 49.88 points, or 0.4 percent, to 12727.21. The S&P 500 (INDEXSP:.INX) eased 3.14 points, or 0.2 percent, to 1353.64, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) lost 11.53 points, or 0.4 percent, to 2896.94.
Oil prices rally: Oil prices gained for the fourth consecutive day after news crept in that a U.S. Navy ship, off the coast of United Arab Emirates, fired on a fishing boat that failed to heed warnings. Crude oil for August delivery increased 1.5 percent, to settle at $88.43 a barrel on the New York Mercantile Exchange. Brent oil for August settlement climbed 1.1 percent to $103.55 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
- Yahoo! Inc. (NASDAQ:YHOO) has named former Google Inc (NASDAQ:GOOG) executive, Marissa Mayer, as its new president and chief executive.
- Uniform and business-supplies company, Cintas Corporation (NASDAQ:CTAS) reported fourth quarter net income of 60 cents per share, on revenue of $1.05 billion that was in-line with the average analysts estimate.
- Computer networking giant, Cisco Systems, Inc. (NASDAQ:CSCO) has agreed to acquire privately held network security company, Virtuata, for an undisclosed sum.
- Comcast Corporation (NASDAQ:CMCSA), the parent company of NBCUniversal, has bought out Microsoft Corporation (NASDAQ:MSFT)’s 50 percent stake in MSNBC.com for around $300 million.
- Anglo-Dutch oil major, Royal Dutch Shell plc (NYSE:RDS.A) (LON:RDSA), has dropped out of the race to acquire East Africa-focused oil-and-gas explorer, Cove Energy PLC (LON:COVE).
- Mattress retailer, Mattress Firm Holding Corp (NASDAQ:MFRM) forecast full-year revenue of between $1.01 billion and $1.03 billion that trailed expectations for $1.04 billion.
- Bond insurer MBIA Inc. (NYSE:MBI) gained 0.7 percent after its insurance unit received approval from the New York State Department of Financial Services to make its scheduled interest payment. The delay in the approval had caused a sharp drop in the stock.
- The US Food and Drug Administration has approved Gilead Sciences, Inc. (NASDAQ:GILD)’s once-daily HIV prevention pill, Truvada. The stock ended 1.5 percent higher.
- Biotechnology company Life Technologies Corp. (NASDAQ:LIFE) has agreed to buy privately held genomics firm, Navigenics, Inc.
- US aluminum producer Alcoa Inc. (NYSE:AA) said that it has reached an agreement with Novelis, whereby it will assume full control of a joint venture to recycle beverage cans.
- New York-based private equity firm Sycamore Partners has extended its tender offer to buy women’s apparel retailer, The Talbots, Inc. (NYSE:TLB), to July 27.
- Specialty pharmaceutical company Hospira, Inc. (NYSE:HSP) recalled four of its injectable cancer drugs because of a problem with the glass vials that contain the medicines.
- Aerospace and energy company, Woodward Inc (NASDAQ:WWD), provided fiscal third-quarter guidance well below expectations, and also cut its full-year earnings forecast, after rising costs and weaker than expected performance at its Aerospace unit, hurt second-quarter results.
- Biopharmaceutical company Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) reported encouraging results in an early-stage trial of its experimental drug to treat an organ-damaging hereditary disorder.
- Conmed Healthcare Management, Inc. (NYSEAMEX:CONM) has agreed to be acquired by privately held Correct Care Solutions for $3.95 per share, or about $59 million in cash.
- Melbourne-based AuthenTec, Inc. (NASDAQ:AUTH) ended 9.6 percent higher after the company said that Samsung has chosen its QuickSec VPN security system for use in new Galaxy smart phones.
- Music software company MakeMusic, Inc. (NASDAQ:MMUS) said venture capital fund, LaunchEquity Partners LLC, has made a bid to acquire the remaining 72.3 percent stake in the company it does not already own for $13.5 million.
- Industrial component maker, Gardner Denver, Inc. (NYSE:GDI), said Barry Pennypacker has resigned as president and chief executive officer and director.
Hedge Fund News Update
- Data from the U.S. Commodity Futures Trading Commission showed that hedge fund managers increased their net long positions across various commodities in the week ended July 10. A separate report by Massachusetts-based EPFR Global showed that investors pulled-out $173 million from commodity funds in the week ended July 11, largely led by withdrawal of $128 million from gold and precious metals.
- London-based GLG Partners, a unit of the world’s largest publicly traded hedge fund manager Man Group Plc (LON:EMG), has formed an Asian long/short equities team, to be based in Hong Kong, and headed by David Mercurio, a former fund manager at Singapore’s sovereign wealth fund.
- Hedge fund veteran, and former Morgan Stanley (NYSE:MS) chief global strategist, Barton Biggs, who predicted the bursting of the dotcom bubble, died at the age of 79.
- Massimo Bertoli, the former European head of special situations at Och-Ziff Capital Management, is set to launch an event-driven fund in the fourth quarter, according to a report in the Financial News.
- London-based Caliburn Capital Partners has agreed to sell its Singapore-based hedge fund research arm, Caliburn Capital Partners Pte, to Hermes BPK Partners, for an undisclosed amount.
Brokerage Upgrades and Downgrades on Monday, July 16, 2012
- Anadarko Petroleum Corporation (NYSE:APC) was upgraded to “outperform” from “neutral” at Credit Suisse.
- Basic Energy Services, Inc (NYSE:BAS) was raised to “outperform” from “market perform” by analysts at Howard Weil.
- The Cheesecake Factory Incorporated (NASDAQ:CAKE) was lifted to “neutral” from “sell” by analysts at Goldman Sachs.
- Cameron International Corporation (NYSE:CAM) was raised to “outperform” from “market perform” by analysts at Howard Weil.
- Brinker International, Inc. (NYSE:EAT) was upgraded to “neutral” from “underweight” by analysts at Piper Jaffray.
- Echo Global Logistics, Inc. (NASDAQ:ECHO) was lifted to “overweight” from “equal weight” at Morgan Stanley.
- Greenhill & Co., Inc. (NYSE:GHL) was raised to “positive” from “neutral” by analysts at Susquehanna with a price target of $44.
- Krispy Kreme Doughnuts (NYSE:KKD) was upgraded to “overweight” from “equal weight” by analysts at Stephens.
- Senior Housing Properties Trust (NYSE:SNH) was lifted to “buy” from “hold” at Stifel Nicolaus with a target price of $25.
- WNS (Holdings) Limited (ADR) (NYSE:WNS) was raised to “outperform” from “market perform” by analysts at Oppenheimer with a price target of $12.50.
- Arch Coal Inc (NYSE:ACI) was downgraded to “underperform” from “market perform” by analysts at BMO Capital Markets.
- Alumina Limited (ADR) (NYSE:AWC) was cut to “sell” from “neutral” by analysts at Citigroup.
- Dean Foods Company (NYSE:DF) was downgraded to “market perform” from “outperform” at BMO Capital Markets.
- Mead Johnson Nutrition CO (NYSE:MJN) was lowered to “sector perform” from “outperform” by analysts at RBC Capital Markets.
- NV Energy, Inc. (NYSE:NVE) was cut to “equal weight” from “overweight” by analysts at Barclays Capital.
- Select Medical Holdings Co. (NYSE:SEM) was downgraded to “neutral” from “buy” by analysts at Bank of America.
- Smithfield Foods, Inc. (NYSE:SFD) was cut by analysts at CLSA from “buy” to “underperform.”
- SanDisk Corporation (NASDAQ:SNDK)